President Lula’s rise to power may not reduce political instability and polarisation in Brazil, and could negatively affect economic freedom, which is already ‘mostly unfree’. Exports have shown resilience and inflation is falling, but economic development could moderate in the short term. Brazil’s huge consumer potential belies deep-rooted inequalities, which are being exacerbated by low skills and a large informal sector. Rising mobile and internet use is being supported by 5G deployment.
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